In early trading on the 1st, LS Electric is surging 11%. Analysts in the securities industry say the decline was excessive, interpreting it as due to the assessment that the error in the disclosed order amount was a simple clerical mistake.
As of 9:37 a.m. that day, LS Electric was trading at 271,500 won on the Korea Exchange, up 30,000 won (12.42%) from the previous session.
That day, the securities industry said the decline in LS Electric's share price was excessive. Heo Min-ho, a research analyst at Daishin Securities, said, "A recent happening occurred in which the order amount entry related to LS Electric, a subsidiary of LS, was corrected, but considering that the correct disclosure was made later, this was merely a mistake and there is no change in the fundamental substance," and added, "Nevertheless, the extent of the sharp plunge in the share price was excessive."
Earlier, on the 27th, LS disclosed that it would correct the order amount figures in the previously submitted quarterly report. On the 15th, LS entered the total orders for its subsidiary LS Electric as 237.82 billion won, but on the 27th it revised the total orders to 23.8 billion won. That is a 100-fold difference from the actual figure. The company said it was due to a simple entry error.